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Tsk 01 . 1.1
1. 1.1 State And Explain The Tender
Pricing Process
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2. Basically the tender pricing process starts when we (contractor organization) receive invitation to
tender from a client organization. But considered the given scenario, I described the tender pricing
from make a decision to submit the tender. Following are the tender pricing process from make a
decision to tender to submission of the tender.
Decision to tender:
Decision to tender can be made in two stages. First is when pre selection enquiries are invited by a
consultant. This time the consultant has to make a decision based on outline information available of
the tender. And the second is when the pre selection has not been followed the contractor may find
that tenders arrive without prior notice.
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3. Prepare the tender program:
After made a decision we have to schedule the works from collect the tender
documents to submission of tender. Because, the tendering process is a limited
duration. So within that period we have to submit our submissions. So we
scheduled that (pre-planed). Because of this we can easily identify our duties
and can successfully submit our documents to the consultant on time.
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4. 3Collect the tender documents:
There are some necessary documents available from the consultant. These documents are very
important to the tendering. It is not a single document. It’s a set of documents that means it
has some volume of documents such as (for example):
Volume 1 ----- Drawings
Volume 2 ----- Specification
Volume 3 ----- Form of Tender
Volume 4 ----- Schedules
Volume 5 ----- BOQ
So these documents were got from the consultant.
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5. Inspection of tender documents:
Since we are in leading contractor organization we have to examine the tender documents
before preparation of the cost estimate. Especially this inspection will help to evaluate
following matters.
Whether the documents and information are adequate for estimating the cost or not.
Whether we have sufficient time to submit the tender or not.
Tender handling program:
As far as our organization is concerned, the tender documents were received 5th of January.
Then the submission date is 26th of January. (It means we have to fill the rate column in the BOQ
and submit and we have to prepare some other documents also). So we have only 21 days. But
the BOQ is more than 100 pages. So in this case tender handling is difficult. So how we are going
to handle this. We handled this with someone help. And we have to preplan to handle this.
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6. Pricing the BOQ:
For this as an estimator of the contractor organization, we should have clear understanding about
all the terms and specifications. First of all we have to build up the unit rate for a particular work
by using their description and specifications (preambles) as well as using the sources of cost
information. Then we calculate the total cost for given quantity according to the BOQ.
Tender Adjudication:
For this we have to make consultation with our management and have to decide what is the
percentage to be added as mark up (overhead and profit) rates. Then as a Quantity Surveyor we
have to apply mark up to all rates.
Inserting the mark up rate can be done in two stages. 1st is after calculate the rate for given
quantity of each work item we can add and give the cost as total quantity cost. 2nd is after
finished the quantity rate (without mark up), we have to add mark up in the summary page. But
we have done through the second way and added markup percentage is 15%.
Submission of tender:
After completing all the works as mentioned tender program we have compile all the documents
and submit such as our price proposal (complete priced BOQ), form of tender, Bid Bond and other
necessary documents as I mentioned above.
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